20 stories for 20 years: Leveling the playing field through fair competition

Small business ownership has long been recognized as a path to financial freedom and independence, but many entrepreneurs are held back by big businesses that game the system in their favor – in both digital spaces and in the real world. This uneven playing field dominated by large businesses leaves small business owners struggling to keep up. That’s why for the past 20 years, Small Business Majority has worked to level the terrain by exposing the tools big businesses use to gain a leg up on their smaller competitors including working to ban non-compete agreements, enforce price discrimination laws and advancing policies that promote fair competition.

One of the most pervasive barriers to entrepreneurship is the use of non-compete agreements. Employees are often forced to sign contracts that prohibit them from starting their own business after leaving a job. For many existing small businesses, non-competes also make it harder to hire skilled talent. These problems are widespread: Our research found that 46% of small business owners reported being subject to a non-compete agreement that prevented them from starting or expanding their business, and more than a third (35%) said they were prevented from hiring an employee because of a non-compete.

When the Federal Trade Commission (FTC) proposed a nationwide ban on non-compete agreements in 2023, Small Business Majority quickly mobilized in support of the proposed rule. We submitted several letters of support for a nationwide ban, including one signed by more than 400 small businesses and advocates. To further spotlight small business voices on the issue, Small Business Majority even hosted a listening session with then-FTC Chair Lina Khan.

Not long after the FTC issued its final rule to ban non-competes in most instances, a federal court decided to block the measure. Still, Small Business Majority continued its advocacy by submitting several amicus briefs and written testimony in support of the rule. Although the FTC ultimately dropped its defense earlier this year, Small Business Majority has continued to advocate against non-compete agreements in the states and host events to strengthen small business owners’ knowledge on the issue. The future of non-compete agreements remains uncertain, but we are encouraged that several states, including Oklahoma and California, as well as the District of Columbia, have moved to restrict them. We’re also encouraged by the current administration's opposition to some non-compete agreements on a case-by-case basis. 

Non-competes aren't the only major obstacle to fair competition. Corporate monopolies dominate markets and often engage in harmful practices such as excessive fees, predatory pricing, self-preferencing and more because they have such large market power in many sectors. This makes it increasingly difficult for small businesses to compete based on the quality and price of their products and services, resulting in limited access to markets and the loss of wealth and jobs in local communities. Our research found that 56% of small businesses said one or more large companies dominated the market in their industry, and 44% agreed that there has been an increase in monopolistic practices in recent years. 

To combat these challenges, Small Business Majority has worked to slow corporate consolidation and raise awareness around price gouging by elevating the voices of small business owners like SBM network member Alap Vora, owner of a grocery store in New York City. Alap testified before the U.S. Senate Committee on Banking, Housing and Urban Affairs Subcommittee on Economic Policy in 2024 on the impact of shrinkflation, price discrimination and consolidation on small grocers and other small businesses. 

To build on these efforts, Small Business Majority has continued fighting for fair competition by advocating before lawmakers on key issues like equitable access to federal contracts for small businesses, engaging policymakers on the importance of creating a level playing field and expanding our education efforts through roundtables and events that inform and empower small business owners.

As our nation becomes increasingly more technology-focused, the need for a level playing field also extends to the digital marketplace. For many small business owners, competing today means navigating large tech platforms that often set the rules and the prices. Small business owners like Georgia entrepreneur Kevin Williams, who relies on platforms including Amazon to sell his popular karaoke party game and other competition-based games, quickly learned that selling on Amazon isn’t quite as simple as just signing up and then watching the money pour in. Gaining traction and sustaining sales on these platforms often requires additional capital and buy-ins, something many small businesses don’t know about and don't always have.

Other small business owners, like Illinois entrepreneur Jasmine Johnson, have echoed Kevin’s sentiments. For Jasmine, the challenge lies in balancing the necessity of using large online platforms with the reality of their sometimes anti-competitive practices. 

To aid small businesses competing in the digital marketplace, Small Business Majority has worked to tackle antitrust laws and digital pricing algorithms. In California, for example, we submitted a letter to the state’s Assembly Appropriations Committee in support of legislation that would update the state’s antitrust laws to address digital pricing algorithms and illegal price fixing. We’ve also continued to elevate small business voices by highlighting their stories at key events with partner organizations, such as securing a speaking opportunity for Jasmine at the American Economic Liberties Project’s annual Anti-Monopoly Summit this year.

While we’ve made significant progress toward leveling the playing field for small businesses, the work is far from complete. By continuing to advocate for policies that curb monopolistic practices, oppose non-competes and promote fair competition we will get closer to fostering a marketplace where small businesses have the freedom to innovate and expand without unfair barriers.